Relations Between The Enterprise Financial Ability And The Enterprise Value Based On The Empirical Data Of Listed Companies From China

Enterprise is the main body of the market economy activity, which has its own value as other commodities. All the enterprise activities are heavily influenced by the enterprise value For example, during the processes of corporate restructuring, issuing stocks or bonds, enterprise merger, division, merger and acquisition activities, the objective and impartial estimatiom of enterprise value plays a crucial role of the leading foundation and improved by the value management. A lot of methods have been proposed for the enterprise value research, but the relationship between corporate value and the financial capacity from the perspective of financial ability has not been taken into consideration. In this paper some tentative work has been done to fill the blank in the theory and practice. The effective operation of enterprise financial activities can significantly improve enterprise’s financial capacity, and in turn, affects the enterprise value. With the progress of society, enterprise gradually steps into the financial ability oriented stage. But enterprises in our country generally lack enough attention to the financial capacity at present. It is focused to cultivating the core technology blindly while ignoring the fact that development of enterprise needs the support of strong financial ability. The fact is that the situation is not conducive to enterprise value increase undoubtedly, enterprise should correctly identify the significant financial actors influencing the value of listed companies in China. Enterprise should take efforts to improve the enterprise value by improving financial ability, to achieve sustained and stable growth in the value of listed companies in China, so as to promote the development of the listed companies.In this paper, the financial ability and the relationship between the financial ability and enterprise value both at home and abroad have been firstly reviewed. And the connotation of financial capacity, component element and the relevant theories have been then established. According to the study above, the enterprise financial ability evaluation system is proposed comprehensively, in which the financial capacity is divided into financial strategy, financial activities, financial performance ability. Then in this paper the empirical research method is used to explore the correlation between financial capacity and enterprise value on the basis of theoretical research. The representative Shanghai and Shenzhen 300 index from 2012 to 2014 companies are selected as the research object to study the correlation between them from the perspective of descriptive analysis, correlation analysis and regression analysis. Also the relations between the financial capacity factors and enterprise value is identified. At last, the conclusions have been obtained as that enterprise value can be improved by financial ability from the empirical research results. And some advices are provided in this paper to realize the value growth of the listed company by financial ability respectively from the points of both macroscopic and microscopic perspectives to help the stakeholders to make decisions.